Medical distributor Owens & Minor reported revenue of $4.82 billion for the year ended Dec. 31, 2005, up 6.6% compared to revenue of $4.53 billion in 2004. Net income for 2005 was $64.4 million, improved 6.5% from net income of $60.5 million last year.
Revenue for the fourth quarter ended Dec. 31, 2005, was $1.22 billion, up 4.3% from $1.17 billion in the same period last year. The pace of revenue growth in the fourth quarter was affected by comparisons to a strong 2004 fourth quarter, the ongoing impact of hurricanes on Gulf Coast region customers, as well as slower than expected conversions of certain new customer accounts. Net income for the fourth quarter 2005 was $15.7 million, improved from net income of $15.4 million in the same period of 2004.
Earnings results include a fourth quarter $3.5 million pre-tax, software asset write-off, resulting from the company’s plan to take advantage of new technology, enabling it to migrate, rather than replace, key operating systems. By migrating these operating systems to a modern, Web-based platform from a mainframe environment, Owens & Minor will avoid a costly enterprise resource planning (ERP) system replacement project and have a more flexible, cost effective platform designed to improve service to customers.